Knowledge quiz

It's time to put what you've learned to the test, get 8 right to pass this unit.

What are the planning outputs from SAP IBP for inventory?

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Target orders, target supply, cycle demand, and service stability.

Stock surplus, cycle supply, service variability, reorder point, demand variability, and safety stock.

Safety stock, demand variability, supply variability, service variability, cycle stock, on-hand stock, pipeline stock, in-process stock, vendor in-transit stock, reorder point, and target inventory position.

If we organize the data model by categories for inventory optimization, which are the correct groups which represent the inputs?

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Master data, demand inputs, transportation sourcing inputs, production sourcing inputs, and inventory policy inputs.

Unit of measure, forecast error, production lead time, and stocking node type.

Minimum stock requirement, component coefficient, and historical sales

Why do we optimize the safety stock?

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Inventory optimization creates orders to determine the amount of production locations within the transportation cycle. These orders absorb variability, permitting you to maintain financial key figures. Inventory optimization determines the optimal safety stock for each stocking location and recommends targets.

Inventory optimization deploys the execution within supply management.

Inventory optimization helps manage uncertainty in the supply chain by determining the amount of safety stock to hold at stocking locations within the supply chain. Safety stock absorbs uncertainty, allowing you to maintain customer service levels. Inventory optimization determines the optimal safety stock for each stocking location and recommends targets.

Which of the following perspectives is correct?

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More Inventory waiting for orders.

More assets waiting for use (production, logistics).

Less customers waiting for products.

All of the above. Only SAP IBP for inventory can provide the optimal calculation and the information needed to decide on where the balance resides for your company.

Which artifacts does a planning area contain according to the last lesson?

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Attributes, master data types, planning levels, key figures, planning details, and global configuration parameters.

Drivers, visibility, and efficiency.

Uncertainty, volatility, and complexity.

How can you use inventory optimization planning profiles?

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You cannot use inventory optimization planning profiles to configure planning area setting for inventory operators. To define profiles, you use the Inventory Profiles app.

You can use inventory optimization planning profiles to configure orders and supply.

You can use inventory optimization planning profiles to configure planning area settings for inventory operators. To define profiles, you use the Inventory Profiles app.

What is the main purpose of the Inventory Profiles app?

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The Inventory Profiles app allows you to create and edit profiles that can be used with inventory optimization operators.

The Inventory Profiles app does not allow you to create and edit profiles that can be used with inventory optimization operators.

What can you achieve with SAP IBP for inventory according to the studied lesson?

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It creates a statistical forecast.

It plans orders by priorities.

Drive sales and operations decisions to inventory targets for the planners; provide visibility to check master data and determine root causes of inventory; and, finally, position inventory efficiently to best absorb variability in complex networks.

What does the target inventory position mean?

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Optimal inventory placement is based on inventory forms and purposes, that is, on inventory components. Inventory components comprise the total inventory for a given product.

Uncertainties multiply across the supply chain due to the interdependency between suppliers, plants, warehouses, and customer sites.

The correct target inventory position (TIP) for a location is the amount of inventory needed to meet current requirements to meet future demand until the next order is received and to cover demand uncertainty. TIP is calculated based on forecasts and includes the following types of inventory: pipeline stock, cycle stock, and safety stock. TIP is independent of the committed inventory. For example, in a demand ramp-down situation, there may be enough inventory to cover future demand without placing an order.

10.

How can we use the sample models?

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We can delete them from the system and they will not be available anymore in the system.

The sample models delivered with SAP IBP also provide time profile definitions. Launching the Sample Model Entities app will guide you to see the time profiles delivered with SAP IBP. You can either copy one of these time profiles or create one from scratch in the Time Profiles app. After creating and activating a time profile, you must load a time profile data file, or schedule an application job to create the time periods.

We do not need them when we are implementing SAP IBP.